Copper dips, demand outlook uncertain

Print this page Posted on : 08-28-2009 by recycleinme.com

London, Aug. 27 Copper eased on Thursday, as investors took stock of a still shaky demand outlook ahead of US growth data and analysts warned prices had exceeded weak fundamentals. By 0918 GMT, copper for three-month delivery on the London Metal Exchange fell to $6,259 a tonne from $6,291 at the close on Wednesday and compared with a session low at $6,251. In other industrial metals, battery material lead fell 2.5 per cent and has remained under scrutiny since Chinese authorities closed smelters over health concerns. Copper, used in power and construction, has more than doubled in price this year, in part due to Chinese stockpiling. Highlighting weak demand, with copper stocks rose 1,150 tonnes to 297,550 tonnes, the highest level since early June. Aluminium In other base metals, aluminium, used in transport and packaging, fell $16 to $1,852 a tonne. Lead was at $2,006 from $2,050 and zinc slipped to $1,819 a tonne from $1,846. Tension and unrest are growing in China as a lead poisoning scandal engulfs a growing number of provinces, threatening further cuts in supply from the world's top producer of the metal. Steel-making ingredient nickel traded at $18,810 from $19,075 while tin traded at $14,000 from $13,825. Worries remain about nearby supplies for both metals, which have pushed the premium for cash material over the three-month contract to around $31 and $220 a tonne respectively. Used in electrical solder, tin investors remain concerned over the scale of long positions developing in the tin market, compared with the amount of available metal stored in LME warehouses.

Source : Business Line